Excise duty on excess realisation within limitation, with no separate show cause notice needed under RT-12 assessment scheme.

Demand for duty on excess realisation was held to be within the normal limitation period under section 11A because the show cause notice was issued shortly after the department received the invoices and came to know of the excess amount. The objection of time-bar was rejected. The tribunal also held that, where rule 173C(11) is read with rule 173-I(2), recovery of duty on the excess amount realised could be made through assessment on RT-12 returns, and a separate show cause notice was not necessary. The appellate order treating the demand as time-barred was therefore set aside.

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Issues: (i) Whether the demand for duty on extra realisation was barred by limitation under section 11A of the Central Excises and Salt Act, 1944. (ii) Whether, in the facts governed by rule 173C(11), a separate show cause notice was required for recovering duty on the excess amount realised.

Issue (i): Whether the demand for duty on extra realisation was barred by limitation under section 11A of the Central Excises and Salt Act, 1944.

Analysis: The department received the invoices only on 14-12-1990 and the show cause notice was issued on 11-3-1991. On the admitted facts, the notice was issued within the normal period from the date the excess realisation came to the notice of the department. The demand could not, therefore, be treated as time-barred.

Conclusion: The objection of limitation was rejected and the demand was held to be within time.

Issue (ii): Whether, in the facts governed by rule 173C(11), a separate show cause notice was required for recovering duty on the excess amount realised.

Analysis: Under rule 173C(11), read with rule 173-I(2), assessment on the basis of RT-12 returns was sufficient to recover duty on the extra amount realised over the declared value. In such a situation, a separate show cause notice was not necessary for making the demand.

Conclusion: No separate show cause notice was required for recovery of duty on the excess realisation.

Final Conclusion: The appellate order holding the demand time-barred was set aside and the Revenue's appeal succeeded to that extent.

Ratio Decidendi: Where excess realisation is detected within the normal period and the statutory scheme permits recovery on assessment of RT-12 returns under rule 173C(11) and rule 173-I(2), the demand is not barred by limitation and a separate show cause notice is not indispensable.

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